THE STATE EMPLOYMENT AGENCY AND ECONOMIC ADJUSTMENT

The State Employment Security Agency is examined in relation to local economic adjustment. An effort is made to set forth the sort of activities that take place at the local level when economic adjustment becomes necessary; suggest those things the Employment Service (ES) might do to support such activities; identify the constraints under which the ES labors in this regard; and suggest the changes that might be required if the ES is to be seen and used as a labor market adjustment tool. A substantial redesign of the ES is proposed, including a redefinition of role, reexamination of its financing structure, reassessment of the specific functions it might take up and the way those services might be packaged, and a look taken at the issue of competition between ES and private employment agencies.     

PROGRAM COORDINATION IN THE EMPLOYMENT SERVICE: A STATE AND LOCAL POLICY PERSPECTIVE

This paper analyzes the role of coordination criteria in employment and training service delivery within the Job Training Partnership Act system. The evolution of coordination criteria is related to current initiatives in the Employment Service at the state and local levels. An operational set of program outcome measures for monitoring coordination efforts is discussed. This set of outcome measures is formulated in the broad context of stabilizing employment and averting the "structuralization" of unemployment impacts wrought by fundamental economic change in the labor market. The assessment and monitoring of such coordination efforts is discussed.     

Morbid obesity and the transition from welfare to work.

This paper utilizes a rich longitudinal data set--the Women's Employment Study (WES)--to investigate whether obesity, which is common among women of low socioeconomic status, is a barrier to employment and earnings for current and former welfare recipients. We find that former welfare recipients who are both White and morbidly obese have been less successful in transitioning from welfare to work. These women are less likely to work at any survey wave, spend a greater percentage of months between waves receiving cash welfare, and have lower monthly earnings at each wave. The magnitude of the difference in labor market outcomes between the morbidly obese and those who are less heavy is in some cases similar in magnitude to the differences in these labor market outcomes between high school dropouts and graduates. In contrast, we find no such labor market differences associated with morbid obesity for African-American respondents. This paper documents the relationship between weight and labor market outcomes for the first time among the welfare population. In addition, it investigates whether the correlation for White females is due to unobserved heterogeneity. We find that after controlling for individual fixed effects, the point estimate of the correlation of morbid obesity and each of the labor market outcomes falls considerably and is no longer statistically significant. These results are consistent with unobserved heterogeneity causing the correlation between morbid obesity and labor market outcomes. Findings are similar after controlling for the respondent's mental and physical health.     

How postsecondary education improves adult outcomes for Supplemental Security Income children with severe hearing impairments

The rapid growth in the number of children participating in the Supplemental Security Income (SSI) program before the age of 18 has led policymakers to consider new methods of assisting children with disabilities in their transition from school to work. Postsecondary education represents one path that SSI children may take to acquire the skills necessary to enter employment and reduce dependency on the SSI disability program as adults. Yet little is known about SSI children's experience with postsecondary education, let alone their ability to increase their labor market earnings and reduce their time on SSI as adults in the long term. This lack of information on long-term outcomes is due in part to a lack of longitudinal data. This article uses a unique longitudinal data set to conduct a case study of SSI children who applied for postsecondary education at the National Technical Institute for the Deaf (NTID) within the Rochester Institute of Technology. The data set was created by merging NTID administrative data on the characteristics and experiences of its applicants to Social Security Administration (SSA) longitudinal data on earnings and program participation. We used this data file to estimate the likelihood that an SSI child will graduate from NTID relative to other hearing-impaired NTID applicants, and we estimated the influence of graduation from NTID on participation in the SSI adult program and later success in the labor market. The results of our analysis show that the percentage of NTID applicants who were SSI children increased over time, from a low of 10 percent in 1982 to more than 41 percent in 2000. However, the differences in the probability of graduation from NTID between deaf SSI children and deaf applicants who were not SSI children did not change accordingly. The probability of graduation for SSI children who applied to NTID was 13.5 percentage points lower than for those who were not SSI children. The estimated disparity indicates that targeting college retention programs toward SSI children may be an effective way to improve overall graduation rates. Our results also show that SSI children who graduated from NTID spent less time in the SSI adult program and had higher earnings than SSI children who did not gradu- ate. Compared with SSI children who were accepted to NTID but chose not to attend, SSI children who graduated from NTID left the SSI program 19 months earlier, were less likely to reenter the program, and at age 30 had increased their earnings by an estimated 49 percent. Our findings demonstrate that SSI children need not be relegated to a lifetime of SSI participation as adults, despite the poor overall labor market experience of this population since the creation of the SSI program in 1974.     

The effect of employment and training programs on entry and exit from the welfare caseload

To policymakers, the major attraction of employment and training programs for welfare recipients is that they hold out the prospect that recipients can be moved off the rolls and to self-sufficiency in the private labor market, thereby decreasing welfare costs and caseloads. This article considers the possibility that such programs may also affect the attractiveness of welfare in the first place, either by making welfare less desirable because the work-training program is viewed by recipients as a burden, or by making it more desirable because the program is viewed favorably by potential applicants. Such responses are termed here “entry rate effects.” Some empirical estimates are presented which suggest that the magnitude of such entry rate effects on the caseload, where positive or negative, may be quite large.     

The interaction of municipal labor markets in the state of Tabasco: an approximation via the use of gravitational models

Employment is an important factor in state planning and a variable in both economic activity and population. Multiregional methodologies which incorporate territorial variables in functional type analyses may be used to study the interactions between municipal labor markets, helping identify those that should receive priority assistance in developing their sources of employment. This work uses a gravitational model to analyze interactions between the local labor markets of 17 seats of municipios in the state of Tabasco as demonstrated with data from the census of 1990. The working hypothesis was that alternatives for labor market growth are distributed hierarchically in descending order of supply as a function of the size of the economically active population in each locality, the relative participation of the unemployed in each locality, and the distance between the localities. The modeling of interaction between local labor markets is achieved in three stages. First, a gravitational model is adjusted with restrictions in the origins. The next step requires use of the parameters resulting from the first step to predict the number of trips to each destination, as a function of levels of unemployment in each locality producing trips. The third stage consists of predictive application of a gravitational model restricted in both origin and destination to define the magnitude of flows between each point of origin and each point of destination. The general character of the gravitational model is described for each step. The model suggests that the main interactions between local labor markets at the level of seats of municipios are located in the center of the state. Three municipal seats in particular had great potential for labor market growth. A separate system of labor market interaction was observed in the southern part of the state. The coastal zone did not appear to offer an alternative for labor market growth.     

Market segmentation and lender specialization in the primary and secondary mortgage markets

Abstract

This paper provides a comprehensive evaluation of market segmentation and lender/purchaser specialization in the primary and secondary mortgage markets. It describes and assesses the 1990 Home Mortgage Disclosure Act (HMDA) data, which for the first time provide detailed information on the borrower and neighborhood racial and income characteristics of mortgage loan originations and securitizations in the primary and secondary mortgage markets. Evidence presented in the paper indicates that home purchase loan origination rates for black applicants—and, to a lesser degree, Hispanic applicants—appear to be significantly lower than those of other racial or ethnic groups. Similarly, the HMDA data reveal that home purchase mortgage origination rates in predominantly minority census tracts are significantly lower than those in predominantly white neighborhoods. The HMDA data also indicate a striking reliance of black borrowers on government‐backed forms of mortgage credit.

The paper further reveals that secondary market loan purchase distributions arrayed by borrower and neighborhood characteristics generally reflect those of home mortgage originations. The borrower and locational characteristics of home purchase loans acquired by the Government National Mortgage Association (GNMA) directly reflect that agency's legislated specialization in government‐backed loans, whereas the characteristics of loans acquired by Fannie Mae and Freddie Mac for the most part derive from the borrower and geographic composition of conventional home purchase loan originations. Findings of analyses of HMDA data raise concern regarding the access of minority and low‐income households and neighborhoods to mortgage finance. Those results also raise some question as to whether the federally chartered agencies in the secondary market are adequately promoting the availability of mortgage credit to low‐ and moderate‐income and minority households.     

What determines the value of life? a meta‐analysis

A large literature has developed in which labor market contracts are used to estimate the value of a statistical life (VSL). Reported estimates of the VSL vary substantially, from less than $100,000 to more than $25 million. This research uses meta‐analysis to quantitatively assess the VSL literature. Results from existing studies are pooled to identify the systematic relationships between VSL estimates and each study's particular features, such as the sample composition and research methods. This meta‐analysis suggests that a VSL range of approximately $1.5 million to $2.5 million (in 1998 dollars) is what can be reasonably inferred from past labor‐market studies when “best practice” assumptions are invoked. This range is considerably below many previous qualitative reviews of this literature. © 2002 by the Association for Public Policy Analysis and Management.     

The Impact of School Choice on Public School Budgets: Evidence From Open Enrollment in New York City

This paper examines budgetary responses of public schools to competition from school choice, exploiting a discrete change in the choice set available to New York City high school students in 2003–2004. Schools facing increased competition (zoned, unscreened, and those with few applicants) increase per-pupil expenditures on noninstructional functions, reducing resources for instruction. Thus, schools may face important tradeoffs when competing for applicants, including between quantity and academic quality of applicants and between incentives to reach capacity and to improve academic outcomes. While advocates claim that school choice improves academic achievement, these results may help explain mixed findings in the previous literature.     

IRCA and the Unionization of Mexican and Central American Undocumented Workers in Los Angeles County

This article explores the likely impact of the Immigration Reform and Control Act (IRCA) on the unionization o f undocumented workers. Research conducted prior to IRCA challenges the conventional wisdom that undocumented workers cannot be organized because of their fear of apprehension and deportation by the INS. Preliminary research subsequent to the passage of this legislation in 1986 suggests that essentially the same factors that mitigated the fear of the INS and made the undocumenteds as receptive to unionization as other classes of workers similarly located in the labor market prior to IRCA are operating in the post-IRCA period. The future "organizability" of undocumented workers rests considerably on unions'determination to organize them and whether they continue to be protected by U.S. labor laws.     

Doubling the estimated value of life: Results using new occupational fatality data

Using a new series of data on occupational fatalities compiled by the National Institute for Occupational Safety and Health, the authors reassess value-of-life calculations based on labor market tradeoffs between fatality risks and wages. The new data are less subject to the problems of measurement error that plague previously used measures of risk. They indicate higher risk levels than previously believed and a significantly different composition of risk levels within industries. The more comprehensive risk data yield value-of-life estimates of $5 million or more—at least twice as large as estimates obtained using the Bureau of Labor Statistics risk data employed in previous studies.     

The story of two administrative states: state capacity in Hong Kong and Singapore

Abstract

Hong Kong and Singapore are both typical administrative states with an efficient administration and a vibrant market, which had achieved rapid economic growth in the past decades. This article examines the trajectory of their state capacity, highlighting recent problems and challenges. Based on a conceptual framework that captures and links up four dimensions – namely polity, bureaucracy, economy and civil society – their commonalities and differences in response are discussed. Their experience should be of particular relevance to transitional authoritarian states in Asia such as China, which faces similar challenges to reform in the arenas of politics, administration, economics and society.     

Applications received in 1987 and allowance rates for supplemental security income

Since the inception of the Supplemental Security Income (SSI) program in 1974, counts of the numbers of cases processed and individuals who were awarded SSI payments have been available. This study breaks new ground, however, by using administrative data to describe in greater detail the characteristics of persons who applied for SSI over a 1-year period. The information on allowance rates is unique because, for the first time, the data have been gathered from the same set of applications. This article tracks the application process to determine whether or not benefits were subsequently received by these SSI applicants in the ensuing 18 months. Of the 1.2 million persons who applied for SSI during the study period, a large proportion were disabled. Among persons whose application was based on age, a greater proportion applied when they attained age 65 than at any other age and they were the most likely to qualify for payments under the program. The data also show how many of the 1.2 million applicants had previously been SSI recipients. In addition to providing demographic and SSI data, the allowance rates are useful in predicting trends in the composition of the caseload.     

Immigration,Globalization, and Unemployment Benefits in Developed EU States

At a time of mounting concern about how traditional welfare states will react to globalization, there has been increasing interest in specifying how global economic forces affect welfare policies in industrialized states. Building on theories from the political economy and comparative institutional literatures, we analyze the influence of an important aspect of globalization—the flow of immigration. Focusing on states in the European Union, we present a theoretical model that illustrates the interactive relationships between immigration, EU labor market integration, and domestic institutions. Our findings highlight how immigration in conjunction with domestic political institutions affects unemployment provisions, while labor market integrative forces remain in the background. The story of immigration and unemployment compensation in the EU is less about the opening of borders and the market forces of integration and more about the domestic political pressures.     

Local supply,temporal dynamics,and unrealized potential in teacher hiring

We explore the dynamics of competitive search in the K–12 public education sector. Using detailed panel data on teacher hiring from Boston Public Schools, we document how teacher labor supply varies substantially across vacancies even within a single district depending on position type, school characteristics, and the timing of job postings. We find that early-posted positions are more likely to be filled and end up securing new hires that are better qualified, more effective, and more likely to remain at a school. In contrast, the number of applicants to a position is largely unassociated with hire quality, suggesting that schools may struggle to identify and select the best candidates even when there is a large pool of qualified applicants. These patterns persist even when we restrict comparisons to only positions within an individual school using school fixed effects. Our findings point to substantial unrealized potential for improving teacher hiring.     

The choice of insurance in the labor market

Employment protection and unemployment benefits are considered the most prominent insurance devices for workers to protect themselves against the risk of unemployment. It occurs that societies either choose a high level of employment protection relative to unemployment benefits or vice versa. This paper explains where countries locate on this trade-off. It is argued that higher coverage of voters out-of-the labor force with intra household transfers yields a politico-economic equilibrium with relatively high employment protection and relatively low unemployment benefits. Cross country data and survey data on voters’ preferences are presented that corroborate the outcomes of the model.     

THE IMPACTS OF DIFFERENT TYPES OF COLLEGE INSTRUCTORS ON STUDENTS’ ACADEMIC AND LABOR MARKET OUTCOMES

Based on a novel data set that links college administrative information with earnings records from a state college system for both public two‐year and four‐year colleges, this study quantifies the impacts of exposure to different types of instructors during students’ initial semester in college on their subsequent academic and labor market outcomes. To minimize bias from student sorting by type of instructor, we combine course‐set fixed effects with an instrumental variables approach that exploits term‐by‐term fluctuations in faculty composition in each department, therefore controlling for both between‐ and within‐course sorting. The findings suggest that two‐year students, particularly racial minority students, have substantially higher levels of exposure to adjuncts with temporary appointments than four‐year students. Two‐year students taking a heavy course schedule with temporary adjuncts are adversely affected in college persistence and subsequent credit accumulation, and the penalty is particularly pronounced among males and racial minority students with stronger academic potential. Such negative impacts on academic outcomes do not translate into poorer short‐ to medium‐term labor market performance. In the four‐year setting, no significant distinction is identified between different types of instructors on either student academic or labor market outcomes.     

USING PRODUCER INCENTIVES TO ACHIEVE SOCIAL OBJECTIVES: AN ASSESSMENT OF THE MARKETPLACE AND PUBLIC POLICIES

The purpose of this paper is to recast the light in which we have come to evaluate public policy initiatives and open the door for a more careful examination o f the effects markets have on the course of public policies employing producer incentives to achieve policy goals. Specifically, the paper will review the past experience of urban renewal to show the relationship between policy objectives and outcomes when policy is designed to work through the marketplace. By arguing that market incentives cons train policy outcomes, it is maintained that policies which are judged to have failed in its goals may in reality have succeeded when viewed in terms of normal market operations.     

THE EMPLOYMENT OF WOMEN IN THE COMMONWEALTH PUBLIC SERVICE: THE CREATION AND REPRODUCTION OF A DUAL LABOUR MARKET*

Abstract: This paper examines the history of the employment of women in the Commonwealth Public Service (CPS) and attempts to explain the discrepancy between the meritocratic principles on which the personnel practices of the Service have been based and the lack of attainment of women in the Service. It demonstrates how the perception of men's and women's merits was structured by the division of labour current at the turn of the century when the CPS was established, and how, with the routinization and feminization of clerical work, these perceptions have helped create and ensure the continued reproduction of a dual labour market within the Service which is proving difficult to eradicate despite the removal of formal impediments.     

Labor Market Returns to MBAs From Less-Selective Universities: Evidence From a Field Experiment During COVID-19

Master's degree enrollment and debt have increased substantially in recent years, raising important questions about the labor market value of these credentials. Using a field experiment featuring 9,480 job applications submitted during the early months of the COVID-19 pandemic, I examine employers’ responses to job candidates with a Master of Business Administration (MBA), which represents one-quarter of all master's degrees in the United States. I focus on MBAs from three types of less-selective institutions that collectively enroll the vast majority of master's students: for-profit, online, and regional universities. Despite the substantial time and expense required for these degrees, job candidates with MBAs from all three types of institutions received positive responses from employers at the same rate as candidates who only had a bachelor's degree—even for positions that listed a preference for a master's degree. Additionally, applicants with names suggesting they were Black men received 30 percent fewer positive responses than otherwise equivalent applicants whose names suggested they were White men or women, providing further evidence of racial discrimination in hiring practices.